Government Allocates HUF 3,200 Bn a Year to Economic Development

Minister Marton Nagy: "it's important for the SME sector to have sufficient access to financial resources."

Economy Minister Marton Nagy (Fhoto: Facebook)

The government is doing everything it can to ensure that the small and medium-sized enterprise sector has sufficient access to capital, National Economy Minister Marton Nagy emphasized on Thursday at the Sopron Economic Forum.

In his lecture titled Protecting Hungarian Businesses Is the Cornerstone of Economic Policy, the minister pointed out that the German economy has been in recession for three consecutive years and that there is a war underway next door. Nevertheless, over the past four years, the Ministry of National Economy has worked to ensure that Hungarian businesses would not have to abandon investments or efficiency improvements due to a lack of financing. He added that the ministry aims for these funds to be distributed not by the ministry itself, but by organizations such as the Hungarian Chamber of Commerce and Industry.

Speaking about the 11-point tax reduction program, he said it is financed through an increase in the bank tax. He noted that there are opposition parties that would abolish the bank tax and advocate that “we should not give support to businesses.” “We completely reject this; our direction is the opposite,” the minister said.

The minister called the 80–90 billion-forint tax reduction package a major step and highlighted that, among other programs supporting businesses, the maximum capital that can be invested into a single company under the Sandor Demjan Capital Program has been doubled; a fixed 3 percent SME loan has been introduced; and the Sandor Demjan 1+1 SME Investment Stimulation Support Program has been launched.

Mr. Nagy stressed that the government allocates 3,200 billion forints annually to economic development.

Answering a question about the introduction of the euro, Mr. Nagy explained that Hungary should not join the eurozone at present, but that does not mean there will not be a time in the future when it could do so. In his view, eurozone accession will be optimal when Hungary’s development level reaches 85–90 percent of the EU average. “We are currently at 75 percent,” he said. 
Responding to a journalist’s question about the 14th-month bonus pension, he said its first installment — one quarter — will be paid out in February. This means that in February pensioners will receive three separate transfers: the base pension, the 13th-month pension, and one quarter of the 14th-month pension. 
Marton Nagy noted that in recent times the government has provided a substantial amount of funding to pensioners, since with the inflation compensation — paid in November — and the food vouchers, an additional 200 billion forints will be distributed at the end of the year. With the first installment of the 14th-month pension, the government will provide an additional 460 billion forints to pensioners.